By default, the
security settings for Windows 7 and Server 2008 R2 allow users who are not
members of the local Administrators
group to install only trustworthy printer drivers, such as those provided
with Windows or in digitally signed printer-driver packages. In other words,
sometimes regular users may not be able to install the driver for a network
printer with “Cannot connect to
printer” or “Access denied” message.

Resolution: 1.
installing printer-driver packages on the print server. In most cases, the
printer-driver packages that is downloaded from the printer vendor are
digitally signed printer drivers. Installing
all the components of the driver on the printer server will help regular
users to install a network shared printer.

2.
Install printer as local printer first and then re-map it as network
printer. By design, clients will download and install printer-driver
packages from a print server. However, the client computers do not check the
driver's digital signature or install all components of the driver into the
driver store because the client operating system does not support these
features. For this reason, you may want to install the printer in the local
computer using LTP1 and then re-map it as a shared printer. The more details
can be found in this post:

3.
Using Group Policy
to deploy printer connections to users or computers Print Management. With
Group Policy, you can deploy printer connections to users or computers Print
Management so that the Policy will add printer connections to the Printers
folder automatically, without requiring the user to have local Administrator
privileges. For more information

You can
also use the Point and Print Restrictions Group Policy setting to control
how users can install printer drivers from print servers. With this setting,
you allow users to connect to only specific print servers that you trust.